How Spot Basis Changes for Corn and Soybeans During Harvest
In our last story on spot basis trends, we looked at how spot basis changes for corn and soybeans as harvest approaches (comparing spot basis from pre-harvest to harvest). This time, we’re looking at how spot basis changes during the harvest period.
To explore basis trends during harvest, we analyzed 8 years of spot basis pricing data from roughly 2,000 corn and soybean buyers, calculating changes in spot basis between the beginning of harvest and various stages of harvest completion in the buyer’s state (as reported by USDA).
For corn, spot basis tends to decrease during harvest, up to about 40 percent complete, and then rebounds.
For soybeans, spot basis tends to decrease during harvest, up to about 60 percent complete, and then rebounds.
Because farmers do not typically store soybeans as often as corn, spot basis impacts during harvest are much more pronounced for soybeans than for corn.
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